When I originally wrote about my Roth IRA ideas back in January, I estimated my MAGI to be between $77,000 and $121,000. I’m now pretty confident that it is around the higher number, which puts me smack in the middle of the income phaseout range. 2012 could very likely be my last year that I can put money into a Roth IRA through the front door and I should take advantage of that, as I am estimating my 2013 MAGI to be between $139,000 and and $167,000 if I stay with my current employer.
A reader asked me recently why I haven’t checked off the “Max out my Roth IRA – $5,000” goal yet.
At this point, I’ve decided that I’m waiting until I get my last bonus for the year and know my exact MAGI so that I know exactly how much I can put into the Roth IRA via the front door. I’ll probably wait until late January when I get my W-2, just to be safe. My current math suggests I’ll be able to put about $1,000-1,200 into my Roth IRA this year, all of which I’ll probably put into Vanguard’s Extended Market Index fund. That amount should be easy to find in January.
I would say that I am on track for the rest of the goals and the money that can’t go in the front door to the Roth IRA will end up on the mortgage, so it’s all good overall.